March 10, 2009

Morning Wrap

More Law Firm Layoffs: Just one week after more than 1,000 legal jobs were lost, law firm layoffs continued yesterday. According to The National Law Journal, more than 300 lawyers and 522 staff members had their jobs cut yesterday. Firms such as White & Case, Morgan, Lewis & Bockius, and K&L Gates all slashed legal jobs yesterday.

AIG Warns Government: According to a 21-page draft presentation American International Group issued before its most recent federal bailout, the insurance giants warned U.S. government officials that without more help, there could be “potentially catastrophic unforeseen consequences.”The Washington Post reports, AIG said allowing the company to fail would damage the global insurance industry, bring down the value of the dollar, and harm money-market funds.

Obama Places Limit on Bush Tactic: Yesterday, President Barack Obama ordered executive officials to consult with Attorney General Eric Holder Jr. before signing statements to challenge new laws. According to The New York Times, Obama’s decision comes after former President George W. Bush often used signing statements to declare that provisions in the bills he was signing were unconstitutional constraints on executive power.

Madoff Victims Want to Talk:The New York Law Journal reports victims of Bernard Madoff's alleged Ponzi scheme want to speak in court in the Southern District of New York when Madoff is expected to enter a guilty plea. Assistant U.S. Attorneys Marc Litt and Lisa Baroni said in a letter to Judge Denny Chin, they were forwarding 25 e-mails regarding the requests of the victims. The hearing is scheduled for Thursday morning.

FDIC Chair Wants Government to Buy Toxic Assets: According to The Washington Post, Federal Deposit Insurance Corp. Chairwoman Sheila Bair says a government plan to take troubled assets off the books of banks will help restore confidence in the banking system. Bair added the plan would be costly – requiring more than the $700 billion Congress has said it will use to help the financial industry – but ultimately profitable for taxpayers.